The European Commission has announced its approval of two additional Italian schemes to support companies in the tourism sector in the context of the COVID-19 pandemic.

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State aid: Commission approves €698 million Italian scheme to support the tourism sector in the context of coronavirus pandemic

The European Commission has approved a €698 million Italian scheme to support companies active in the tourism sector affected by the coronavirus pandemic. The scheme was approved under the State aid Temporary Framework and is included in the national Recovery and Resilience Plan.

Under the scheme, the aid will take the form of (i) direct grants and tax credits for tourism companies; and (ii) credits for travel agencies and tour operators. The purpose of the scheme is to address the liquidity needs of the beneficiaries and to help them continue their activities during and after the pandemic.

The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the aid measure under EU State aid rules.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: "Companies active in the tourism sector have seen their revenues significantly decline because of the coronavirus outbreak and the restrictive measures in place. This €698 million Italian scheme will enable Italy to support these companies by helping them meet their liquidity needs and ensuring the continuity of their activities. We continue to work in close cooperation with Member States to find workable solutions to mitigate the economic impact of the coronavirus pandemic, in line with EU rules". A press release is available.

State aid: Commission approves €380 million Italian scheme to support the tourism and spa sectors in the context of the coronavirus pandemic

The European Commission has approved a €380 million Italian scheme to support the tourism and spa sectors in the context of the coronavirus pandemic. The measure was approved under the State aid Temporary Framework. Under the scheme, the aid will take the form of tax advantages.

The measure will be open to companies active in the tourist-hotel accommodation sector, open-air accommodation facilities and spas. The scheme is aimed at covering part of the costs related to the development and improvement of the infrastructure and facilities of the eligible companies. The latter will be entitled to receive an aid amount covering up to 65% of the eligible costs within a maximum ceiling of €200,000 per beneficiary.

The Commission found that the Italian scheme is in line with the conditions set out in the Temporary Framework. In particular, the aid (i) will not exceed €2.3 million per beneficiary; and (ii) will be granted no later than 30 June 2022. The Commission therefore concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions of the Temporary Framework. On this basis, the Commission approved the measure under EU State aid rules.